In a meeting with co-op officials Kerala Chief Minister Pinarayi Vijayan said RBI could examine the functioning of state cooperative banks, but none would be allowed to take control of co-op banks.
“We will not allow anyone to take control over cooperative banks in the state,” he thundered. Democracy in co-op banks would be compromised if RBI is given an free run, he is believed to have said.
Lauding co-op banks for transparency and fair play he said RBI can at best examine it but cannot control it. Kerala co-op banks like their cousins in other parts of the country have been badly hit in the wake of demonetization.
Two states Kerala and West Bengal have been accused of indulging in large scale money laundering in the wake of demonetization announcement. Vijayan has said there is no hanky-panky in co-op banks in Kerala.
Promising to help co-op banks CM wanted Nabard also to chip in. PACS have also been allowed to withdraw cash up to Rs 24,000 a week. KYC has been made compulsory, reports PTI.